Italy's oil and gas sector will continue to suffer from a gradual depletion of its hydrocarbonreserves and the rapid downsizing of the country's ailing refining sector. While an active exploration sceneand a gradually improving regulatory environment are positive signs, we believe these improvements willtake some years to garner more substantial industry changes.
Latest Updates And Key Forecasts
Italy's oil production is expected to receive a significant boost from the Tempa Rossa field, expected tocome online in late 2018. According to an update by Shell in July 2017, the field is currently underdevelopment and first oil continues to be expected by 2018. Shell holds a 25% interest in the concession.
Nonetheless, this will not suffice to achieve the government's goal of doubling oil production by 2020.
Rapidly declining reserves are expected to push oil output gradually lower in the post-2020 period shouldno new major discoveries be made over the coming years.